Question :
MULTIPLE CHOICE
11. The accounting concept requiring that an accounting system : 1369840
MULTIPLE CHOICE
11. The accounting concept requiring that an accounting system reflect information relating only to those economic events pertaining to a particular entity is the:
A)business entity concept
B)going entity concept
C)monetary unit concept
D)periodicity concept
12. The accounting concept which assumes that, absent any information to the contrary, the business will continue into the foreseeable future is the:
A)business entity concept
B)future entity concept
C)going concern concept
D)periodicity concept
13. The accounting concept which asserts that money is the common measurement unit for economic activity is the:
A)business entity concept
B)monetary unit concept
C)going concern concept
D)dollar-value concept
14. The accounting concept requiring that the profits of a business be determined at regular intervals throughout the life of the business is the:
A)business entity concept
B)going concern concept
C)monetary unit concept
D)periodicity concept
15. Which of the following is not an objective of financial reporting specified in Concept
Statement #1?
A) To provide information useful to investors and creditors
B) To provide information helpful in assessing the future amounts and timing of cash
flows.
C) To provide information about the assets and claims on the assets of a firm.
D) To prepare income statements on a timely basis.
16. Which of the following is an objective of financial reporting specified in Concept
Statement #1?
A) To provide information useful to investors and creditors
B) To provide a statement of cash flows
C) To provide a balance sheet at the end of a year.
D) To prepare income statements on a timely basis.
17. The owner of a dry cleaning business maintains separate checkbooks for his business and his personal affairs. This best describes an application of the:
A)business entity concept
B)going concern concept
C)monetary unit concept
D)periodicity concept
18. The We Build Anything Construction Company recently completed the construction of an office building that took 14 months to complete. Following the completion of this project the company began construction of a shopping center that took 15 months to complete. The company’s financial statements were not prepared at the end of each of these projects but at the end of the fiscal year. This best describes an application of the:
A)business entity concept
B)periodicity concept
C)monetary unit concept
D)going concern concept
19. In its annual report the FCX Company reported the value of its ending inventory, rather than the number of units on hand. This best describes an application of the:
A)business entity concept
B)going concern concept
C)monetary unit concept
D)periodicity concept
20. Every three months, Ashmont Antiques produces a report showing profits earned during the most recently ended quarter. This best describes an application of the:
A)business entity concept
B)periodicity concept
C)monetary unit concept
D)going concern concept
